Slide 1: Full Year 2016 Results
Lucara Diamond Corp. Full Year 2016 Results
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information • This investor presentation contains forward‐looking statements and information as defined in applicable securities laws including: the estimates of the Company’s mineral reserve and resources; estimates of the Company’s production and sales volumes,
Slide 3: 2016 Highlights
2016 Highlights Strong demand for Lucara’s diamonds • Revenue for the year was $295.5 million or $824 per carat (2015: Revenue $223.8 million or $593 per carat) Robust cash generation: • Cash generated from operations (post tax) of $103 million Increase of 21% compared to 2015 • Operating cost per t
Slide 4: Key Performance Indicators
Key Performance Indicators Revenue EBITDA Net Income (millions) (millions) (millions) $185.4 $295.5 $77.8 $133.9 $70.7 $223.8 2016 2015 2016 2015 2016 2015 Total Sales EBITDA Margin Earnings per share (average dollar per carat) 63% 60% $824 $0.21 $0.19 $593 2016 2015 2016 2015 2016 2015 4
Slide 5: Sales Performance
Sales Performance Total Sales Regular Tenders Exceptional Stone Tenders (average dollar per carat) (average dollar per carat) (average dollar per carat) $34,301 $824 $32,471 $400 $31,597 $644 $593 $335 $318 2016 2015 2014 2016 2015 2014 2016 2015 2014 Strong demand for Lucara’s diamonds drives price
Slide 6: Return to Shareholders
Return to Shareholders Regular Dividend Per Share Growth in Regular Dividend Payments Dividend 67% Yield 3.2%* 50% Dividend Yield 2.8%* Dividend Dividend Yield 2.0%* Yield 2.4%* C$0.10/share C$0.06/share C$0.04/share C$0.04/share 2017 2016 2015 2014 2017 2016 2015 *Share price at respective beginnin
Slide 7: Strong Financial Position
Strong Financial Position Cash-on-hand (millions) Net Cash balance of $53 million $134.8 • Dividends of $149.7 paid in 2016 $100.8 Credit facility of US$50 million remains undrawn $53.3 2016 2015 2014 7
Slide 8: Karowe Mine
Karowe Mine 8
Slide 9: Karowe Operating Performance
Karowe Operating Performance Production Information 2016 2015 Ore processed (tonnes) 2,613,217 2,238,974 Ore mined (tonnes) 2,722,375 3,187,222 Carats recovered (carats) 353,974 365,690 Plant feed grade (carats per hundred tonnes) 13.5 16.3 Waste mined (tonnes) 11,058,041 13,890,115 Revenues and Ope
Slide 10: Health & Safety and CSR
Health & Safety and CSR Health and Safety: • Excellent safety performance with Safety and Health Lost Time Injury Frequency Rates (‘LTIFR’) for 2016 of zero (measured per 1,000,000 hours) (2015: 0.4) • The Company has achieved 5 million man hours without a lost time injury CSR: • Micro loans to supp
Slide 11: Exploration
Exploration 11
Slide 12: Resource Expansion AK06
Resource Expansion AK06 South Lobe Centre Lobe North Lobe • 10,000 metre drill program with target to bring inferred mineral resources into Existing pierce point the indicated category • Drilling program completed in February 2017 Proposed DDH New pierce point 12
Slide 13: Botswana Exploration Licences
Botswana Exploration Licences • Boteti awarded two prospecting licences in mid Sept 2014 • Both prospecting licences host known diamondiferous kimberlites • Block A (BK02) • Block E (AK11, 12, 13, 14) • Sampled in excess of 10,000 tonnes of kimberlite from BK02 during 2016 • Drilling confirmed the s
Slide 14: Prospecting Licence BK02
Prospecting Licence BK02 • Processing of second 5000 tonne sample completed with audit samples and final diamond sorting forecast for Q1 2017 • Total of 17 drill holes completed by Q1 2017. Drill core logging is underway with microdiamond analysis forecast to be completed by Q3 2017 BK02 core, • Ini
Slide 15: Prospecting Licences AK11, AK13 and AK14
Prospecting Licences AK11, AK13 and AK14 • AK11: Drill program of 10 holes completed during the year • Preliminary core logging indicates two distinct pipe Crater infills, a well preserved crater sequence (graded bedding, re‐sedimented kimberlite) and at depth a more magmatic/pyroclastic pipe infill
Slide 16: 2017 Outlook
2017 Outlook 16
Slide 17: 2017 Outlook
2017 Outlook Revenue (US$ million) – excluding sale of the Lesedi La Rona 200 – 220 Sales (thousand carats) 290 – 310 Tonnes of ore processed (million tonnes) 2.2 – 2.5 Ore mined (million tonnes) 2.4 – 2.7 Waste mined (million tonnes) 17.0 –20.0 Operating cash costs per tonne ore processed (dollars)
Slide 18: Investment Highlights
Investment Highlights • Karowe has produced an extraordinary number of large gem quality diamonds: – 130 diamonds have sold for > US$1 million; – 21 diamonds for > US$5million; – 7 diamonds for > US$10 million; – 90,000 carats of +10.8ct diamonds recovered • Recovery of the 1109 carat Lesedi La Rona
Slide 19: Diamond Market
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Slide 20: Diamond Market and Lucara Production
Diamond Market and Lucara Production • Market is cautious – supply and demand fundamentals remain unbalanced • Polished diamond sales lag rough diamond sales – forecast pressure on rough diamond prices • High value diamond market remains robust ‐ Karowe production is noted for its high value gem qua
Slide 21: Contact Information
Contact Information Lucara Diamond Corp. 2000 ‐ 885 W. Georgia Street Vancouver, BC, V6C 3E8 Telephone: + 1.604.685.7842 Tanuja Skerlec Manager, Investor & Public Relations Email: tanuja.skerlec@lucaradiamond.com 21